Ann: LaserBond Dec 24 Half-Year Report Summary, page-72

Imagine stepping off a curb to cross the street and suddenly being struck by a passing vehicle. The resulting severe injuries permanently impact your life, changing its course forever. As you lie in the hospital bed reflecting on the incident, an undeniable truth emerges: the decision to step off the curb was yours alone. It wasn't your feet or legs independently making that choice, nor can blame rest on external factors such as the driver, road conditions, government policies, social status, gender, race, or skin colour. Ultimately, the accident occurred because your brain, the command center of your body, made that critical decision.

Many underlying factors could have influenced your brain's decision at that crucial moment. Perhaps it was a distraction; your mind was preoccupied, focusing on something other than safely navigating the crossing. Or perhaps it was your prior experience. You may have grown up in a country where vehicles travelled in the opposite direction, conditioning your instincts incorrectly for the current situation. Regardless of these contributing factors, the responsibility remains with the brain, as it directs all actions and is accountable for their outcomes.

This analogy vividly underscores the brain's critical role in decision-making and highlights how those decisions directly shape our actions, experiences, and results. Similarly, within an organisational framework, the board of directors functions as the company's "brain," holding ultimate responsibility for decisions that guide the entire organisation's direction, health, and success.

Just as a momentary misjudgment by the human brain can lead to personal tragedy, poor or uninformed decisions by an organisational board can result in severe, lasting harm to the business, its employees, stakeholders, and reputation. Boards making critical choices without adequate knowledge, expertise, or thoughtful consideration are essentially stepping blindly into traffic, risking profound damage that could have been avoided through more deliberate and informed decision-making. Thus, accountability at the highest levels of leadership is essential. The Buck Stops at the Top.

Decisions made by a board without any member having knowledge or experience in the area under consideration can lead to several serious consequences:

• Without informed perspectives, decisions are based on assumptions, intuition, or incomplete understanding, leading to flawed outcomes or ineffective strategies.

• Misallocation of resources, costly errors, or losses can occur, especially in technical or specialised fields (e.g., technology, engineering, manufacturing).

• Ignorance of regulations, standards, or industry best practices can lead to non-compliance, regulatory penalties, lawsuits, or reputational damage.

• Investors, employees, and customers may lose confidence in the board’s judgment, potentially harming stakeholder relationships and the company's reputation.

• Decisions may diverge from organisational goals or strategic objectives, negatively affecting long-term competitiveness and sustainability.

• Implementation of poorly informed decisions often results in inefficiencies, production delays, or operational disruptions, further compounding problems.

• Directors must act with care, diligence, and in good faith. Decisions made without appropriate expertise can expose board members personally to allegations of negligence or breach of fiduciary duties.

• Uninformed decisions can cause internal friction, morale issues, and conflict among management, staff, or shareholders who perceive the board as disconnected or ineffective.